Accenture price target lowered to $342 from $347 at TD Cowen

Investing.com - TD Cowen lowered its price target on Accenture plc (NYSE:ACN) to $342 from $347 on Monday while maintaining a Buy rating on the consulting and technology services company. The stock, currently trading at $290.61, has experienced a significant 9.2% decline over the past week, with InvestingPro data showing it’s trading near its 52-week low of $273.19.

The firm cited light bookings and a fourth-quarter DOGE (Digital, Operations, Growth and Enablement) headwind as factors contributing to recent pressure on the stock. TD Cowen noted there was limited clarity regarding Accenture’s fiscal year 2026 outlook. According to InvestingPro, nine analysts have recently revised their earnings expectations downward, though the company maintains a GOOD overall financial health score.

The research firm expects a "near-term stalemate" around Accenture shares amid challenging conditions for arguing a recovery in spending. However, TD Cowen believes a "needed clearing event" will form with fiscal year 2026 estimate moderation.

Analysts at the firm anticipate Accenture will guide for 2-5% constant currency growth for fiscal year 2026. They also noted that the company continues to execute well on factors within its control.

TD Cowen added that foreign exchange movements are helping estimates for Accenture, which factored into their revised price target of $342.

In other recent news, Accenture reported its fiscal third-quarter results, surpassing expectations with a 4% year-over-year organic growth and a 13% increase in earnings per share. Despite these positive results, the company’s fiscal fourth-quarter revenue guidance remained conservative, projecting 0-4% organic growth, with an expected earnings per share of approximately $2.90, slightly below the consensus estimate of $3.00. Accenture also announced $1.5 billion in generative AI bookings for the quarter, reflecting a significant 67% growth year-over-year. The company plans to restructure its operations by creating a new integrated business unit, Reinvention Services, effective September 1, 2025, aiming to enhance service delivery by embedding data and AI capabilities.

Analyst firms have been adjusting their ratings and price targets for Accenture. Stifel reiterated a Buy rating with a $355 price target, while William Blair maintained an Outperform rating, citing Accenture’s leadership in next-generation capabilities. However, BMO Capital lowered its price target to $325, maintaining a Market Perform rating due to federal business headwinds. Guggenheim also reduced its price target to $335, expressing concerns about fiscal year 2026 expectations but maintained a Buy rating, noting confidence in Accenture’s third-quarter performance. These developments highlight the mixed sentiment among analysts regarding Accenture’s future prospects amidst ongoing macroeconomic uncertainties.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.